TheCorporateCounsel.net

Accounting is the latest profession where “nobody wants to work anymore.” That’s according to this WSJ article, which says that the shortage of good help is starting to show up in corporate disclosures as a material weakness. Here’s an excerpt:

Nearly 600 U.S.-listed companies of a total 7,359 reported material weaknesses related to personnel, typically in accounting or information technology, this year through June, down 5.2% from the prior-year period, but up 40.6% from the 2019 period, according to a review of filings by research firm Bedrock AI.

The article says that, while strained resources aren’t unusual at smaller companies, the difference now is that even large companies are affected – and it’s because they’re having trouble filling the roles, not because they’ve decided to eliminate positions. US-listed companies that are based in other countries are having a particularly difficult time retaining accounting personnel who are qualified to handle their complex issues. The article also predicts that the material weaknesses could lead to a wave of restatements.

On a somewhat related note, make sure to mark your calendar for our webcast, “Non-GAAP Developments: Enhancing Your Policies and Procedures” – next Thursday, July 20th, at 2pm Eastern. Hear from Honigman’s Mike Ben, Deloitte’s Pat Gilmore, Faegre Drinker’s Amy Seidel, and Covington’s Matthew Franker about non-GAAP developments and how you should be revamping your related disclosures, policies, procedures and controls. If you’re not already a member with access to this webcast, sign up online for a no-risk trial or email sales@ccrcorp.com.

– Liz Dunshee